Safe and Sound

EAST TEXAS PROFESSIONAL

LONGVIEW, TX
5
Star Rating
LONGVIEW, TX-based EAST TEXAS PROFESSIONAL is an NCUA-insured credit union founded in 1953. The credit union holds $586.0 million in assets, according to June 30, 2017, regulatory filings.

With 156 full-time employees, the credit union has amassed loans and leases worth $378.8 million. Its 66,338 members currently have $468.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, EAST TEXAS PROFESSIONAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, EAST TEXAS PROFESSIONAL achieved a score of 28 out of a possible 30 points, beating out the national average of 15.26.

EAST TEXAS PROFESSIONAL had a capitalization ratio of 19.00 percent in our test, higher than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, EAST TEXAS PROFESSIONAL scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

Troubled assets made up 4.00 percent of EAST TEXAS PROFESSIONAL's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

EAST TEXAS PROFESSIONAL scored 14 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 7.00 percent in our test, above the average for all credit unions.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.